Jeff Burton, Times of Northwest Indiana
jeff.burton@nwi.com
HAMMOND | Police officers, firefighters and other city employees may find themselves in the unemployment line, if what city officials say is a $13 million budget shortfall becomes a reality.
Calling the situation "dire," Mayor Thomas McDermott Jr. said the city was prepared to deal with a shortfall between $4 million and $5 million, due to property tax caps. He said the city received word from the Indiana Department of Local Government Finance last week that property tax collections are expected to be down and the city should prepare itself for an additional $7 million in cuts.
"We could live with $4 million. I wasn't scared of that," McDermott said. "There's no way to make ($13 million) up without reducing personnel."
Ed Lomeli, president of the city's firefighters union and a 20-year department veteran, said if the cuts McDermott is proposing come to fruition, the city's residents would feel it.
"The professionalism will stay the same, but the quality of care will (be reduced). That's something the public will have to deal with," Lomeli said. "If you're in North Hammond and the only ambulance available is in Hessville, (service) will be delayed. The quality of care will be impacted."
Lomeli said the city should look at using a variety of user fees or redirect casino dollars to save jobs and maintain services, something City Councilman Al Salinas, also a city employee, said he favors. Salinas said in addition to using casino dollars, he's interested in possibly selling or leasing the Lost Marsh Golf Course.
McDermott said he's against using casino revenues because the cuts likely will be permanent and using gaming funds would indefinitely reroute those dollars from other projects.
Any layoffs, McDermott said, will be based on seniority, affecting many of the workers hired under his administration. McDermott said he's open to offering early retirement initiatives to curb the number of jobs lost, but that directive would need to come from the City Council.
Councilwoman Kim Poland said she would consider anything that would save jobs.
"I want to explore every option we have available. I hate the thought of laying anyone off," Poland said. "It's a staggering amount of money, and it will be painful."
Salinas said he has heard that layoffs could be coming as soon as October. McDermott would not comment on a time frame.